Fire River Announces Closing of Final Tranche of BayFront Financing and Closing of Private Placement with Sunel Securities for aggregate gross proceeds of $7 Million

Published: September 20, 2012

September 20, 2012 Vancouver, Canada -- Fire River Gold Corp. (the "Company") [TSX.V: FAU | OTCQX: FVGCF | FSE: FWR] announces that it has closed the third and final tranche of its previously announced brokered private placement financing with BayFront Capital Partners Ltd. ("BayFront") as well as its previously announced brokered private placement financing with Sunel Securities Inc. ("Sunel") (the "Offerings"). The Company issued an aggregate of 108,694,492 Units at a price of $0.065 per Unit for aggregate gross proceeds of $7,065,141.98. Each Unit consists of one common share ("Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the purchaser to subscribe for one additional common share (a "Warrant Share") at an exercise price $0.10 per Warrant Share for a period of five years.

The Company paid BayFront and Sunel who acted as lead Agents for each Offering, respectively, and certain finders assisting with the Offerings, an aggregate of $409,864.09 and issued 6,305,603 compensation options (each, a "Compensation Option") as commission in connection with the Offerings. Each Compensation Option is exercisable into one Unit at a price of $0.065 for a period of five years.

The proceeds from the Offerings will be used for the further development of the Company's Nixon Fork mine, satisfaction of outstanding debt and general working capital.
All Common Shares, Warrants, and Compensation Options, carry a four-month hold period restricting them from trading until January 20, 2013.

About Fire River Gold
Fire River Gold Corp. is Alaska's newest gold producer, with a projected 30,000 ounces per year of gold to be produced on its wholly owned Nixon Fork Gold Mine located in the resource rich Tintina Gold Belt. Operations started in July 2011, with a near term production target of 30,000 oz/Au by end of year 2012, projecting an increase to 40,000 oz/Au per year in 2013, ramping up to a projected 50,000 ounces in 2014. This year-round mine program is producing both concentrate and doré bars. Fire River Gold has fantastic growth potential, with excellent targets identified to grow its current high grade resource. Coupled with a strong management team and board of directors, Fire River has a bright future ahead.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including with respect to the use of proceeds of the Private Placement. Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risks related to unsatisfactory results of due diligence, international operations and doing business in foreign jurisdictions, risks associated with mineral exploration and development activities generally, the risk of commodity price and foreign exchange rate fluctuations, and risks and uncertainties associated with securing and maintaining necessary regulatory approvals. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.